These properties will be sold under the deal with the Federal Government.

"We are embarking on the largest renewal of public housing in the history of self government, replacing old and tired public housing that has reached the end of its useful life with a large investment in the quality modern accommodation our tenants deserve," he said.

"As the Territory's renewal of public housing progresses and outdated accommodation is replaced roof-for-roof, surplus land will be sold under the scheme and attract further bonuses."

Opposition spokesman Alistair Coe welcomed the investment from the Commonwealth, but said the ACT Government should not be "squandering the money on light rail".

"It is unfortunate that the only infrastructure project the ACT Government nominated is light rail," he said.

"The Coalition Government's gift to the ACT could have been spent on any number of projects, such as road upgrades, bus infrastructure, or a convention centre.

"However, given the ACT has no such projects planned, light rail was the only option."

"While the project was considered to meet the criteria of the initiative, the Commonwealth is aware that there has been debate as to whether alternative projects may have higher potential economic benefits," he said.

Responding to the criticism about the ACT Government's light rail project, Minister for Capital Metro Simon Corbell said the project met all the Commonwealth's criteria and was worthy of funding.

"This is a very important decision for the ACT and a strong endorsement from the Federal Liberal Government that Capital Metro is productive infrastructure, that meets their criteria and which has economic benefits for all of the ACT economy," he said.